US retail sales rose a sluggish 0.2 per cent in October, matching economists' expectations, as a housing downturn and steep oil prices constrained consumer spending, Commerce Department data today showed.
Last month's increase was down sharply from September, when sales rose an upwardly revised 0.7 per cent.
Home furnishing stores saw a 0.9 per cent sales decline in the latest month as the housing slump took its toll, while gasoline stations posted a 0.8 per cent increase.
Excluding autos, October sales rose 0.2 per cent, a shade below economists' forecast for an increase of 0.3 per cent.
"The numbers show retail sales are broadly holding up," said Samarjit Shankar, director of global foreign exchange strategy at Bank of New York Mellon in Boston. "It's a net positive for the US economy, given that there was concern that consumer confidence was going to weigh down consumer spending."
Economists polled by Reuters had widely expected sales growth to slow from September's pace as consumer confidence sank under the weight of the housing slide, rising oil prices and tightening credit terms.
Investors are watching retail sales data particularly closely for signs that consumers are caving, which would deal a severe blow to the already shaky US economy. Consumer spending accounts for more than two-thirds of US economic activity.
Last week, major retailers posted disappointing October sales, which they blamed on the economic woes plus unseasonably warm weather that hurt demand for fall clothing.
The Commerce report showed a similar trend, with department store sales down 0.5 per cent and clothing and accessory stores up a modest 0.1 per cent.